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ANNUAL REPORT 
OF 






THE 


ONTARIO ENERGY 


BOARD 


YEAR 


ENDING DECEMBER 31, 


1962 










ONTARIO 



telephone ONTARIO ENERGY BOARD ™o bay street 

365-2851 TORONTO 2 



February 11, I963 



Sir: 



I beg to submit the Annual Report for 
I962 of The Ontario Energy Board, and I have 
the honour to be, Sir, 



Your obedient servant, 

A. R. Crozier, 
Chairman. 



The Honourable R. W. Macaulay, Q.C., 
Minister of Energy Resources, 
Parliament Buildings, 
Toronto, Ontario. 



ANNUAL REPORT 



OF 



THE ONTARIO ENERGY BOARD 



YEAR ENDING DECEMBER 31, 1962, 



ONTARIO ENERGY BOARD 
LIBRARY 



Digitized by the Internet Archive 
in 2013 



http://archive.org/details/annualreportonta1962onta 



ANNUAL REPORT 
YEAR ENDING DECEMBER 31. 1962. 

The report of the Board for the calendar year 
I962 is submitted herewith in accordance with Part II, 
Section 39 (1) of The Ontario Energy Board Act. 

While matters dealt with by the Board have 
increased in complexity, the functions and responsibi- 
lities have remained constant and are as required by 
The Ontario Energy Board Act, The Energy Act, The Muni- 
cipal Franchises Act and The Assessment Act. 

In December, amendments to the regulations 
under The Ontario Energy Board Act named The Ontario 
Energy Board as a Board of Arbitration in matters per- 
taining to compensation to landowners in gas storage 
areas, pursuant to Section 19 of The Ontario Energy 
Board Act. On February 26, I963 the Board will hold 
its first gas storage arbitration hearing. 

The Board heard 96 applications at 79 formal 
hearings throughout the year and 36 Board meetings were 
held. In addition, the Board has been conducting an 
extensive and exhaustive study of natural gas storage 
and its related problems pertaining to storage rentals, 
royalty payments, terms and conditions of oil and gas 
leases, gas storage agreements and The Gas and Oil 
Leases Act . 



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The applications heard by public hearing fall 
into the following categories: 

APPLICATIONS HEARD UNDER : 

The Municipal Franchises Act 

Approval of terms and conditions 

of franchise agreements 26 

Certificates of Public Convenience 

and Necessity 14 

The Ontario Energy Board Act 

Gas Rates 29 

Authorization to inject gas 1 

The Energy Act 

Testing for suitability for storage of gas 1 

Secondary Recovery of Oil 2 

Leave to Construct Pipe Lines 22 

Pipe Line Expropriations 1 

96 

By comparison with the year I96I, there has 
been a general overall increase in the number of appli- 
cations heard in each of the listed categories with the 
exception of pipe line expropriations which this year 
decreased by 32, despite the fact that the number of 
pipe lines for which leave to construct was granted 
doubled in the year I962 . This indicates a high pro- 
portion of settlements between the landowners and the 
owners of the pipeline. 



-3- 



RECEIPTS 

Filing fees and hearing costs $20,227.77 

Sale of documents 768*23 

Total $20,996.00 

One of the major activities of the Board during 
the year 1962 was the completion of the Union Gas Company 
of Canada's rate application. This hearing which began 
on September 20, 196l concluded in April, 1962 and the 
Board's Reasons for Decision were issued in June. 

In May, 1962 the Board commenced the rate 
hearing of United Gas Limited. The preliminary portion 
only of this application was dealt with and an interim 
order issued. This hearing will reconvene in January 
of I963 when the evidence-in-chief will be heard. 

A third major rate hearing, that of Northern 
Ontario Natural Gas Company and its almost wholly-owned 
subsidiary Twin City Gas Company, was begun in September, 
It is anticipated this hearing will be concluded by the 
Spring of I963. 

Two public hearings were held for permission 
to conduct water flooding operations for the secondary 
recovery of oil. One of these operations is located 
in the Warwick Pool, Township of Warwick, Lambton 
County and the other in the south part of Rodney 



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Pool, Aldborough Township, Elgin County. 

A hearing was held in the matter of an appli- 
cation to drill and carry out tests in Crowland and 
Humberstone Townships, V/elland County for the suita- 
bility of the Whirpool formation for the storage of 
natural gas. 

Following a hearing of interested persons the 
Board granted authorization for the injection and stor- 
age of gas in Dawn #156 Pool in Lambton County. Earlier 
in the year this pool had been designated as a gas 
storage area. 

Upon the recommendation of the Minister of 
Energy Resources, the Board was required by Order-in- 
Council to conduct a study of certain matters pertain- 
int to natural gas storage, as mentioned earlier in 
this report . In this connection the Board received 17 
briefs from interested persons and pipe line companies 
and held public hearings of the landowners in the desi- 
gnated storage pools of Dawn Township #1 and #2 gas 
pools, Waubuno and P ayne gas pools. 

Many states in the United States were visited 
and persons contacted in order to ascertain the latest 
gas storage developments and methods of dealing with 
storage payments and other related matters. An interim 
report covering the Board's findings will be submitted 
during I963. 



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There have been no additions or deletions in- 
sofar as the Chairman and Commissioners are concerned. 
The staff of the Board has changed slightly in that the 
position of Board engineer has been vacant since the 
resignation of that incumbent in July of this year. 
The stenographic services have had one deletion during 
the year for which replacement has not yet been pro- 
vided . 



AR.Oi 



Ontario Energy Board 

1962 Annual Report > 



o;:tar!o energy board 
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